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EU Bioeconomy Economics and Policies: Volume I Liesbeth Dries Sample

EU Bioeconomy Economics and Policies: Volume I, edited by Liesbeth Dries and others, explores the evolution of EU agricultural policies, highlighting the shift from production-related payments to those focused on environmental performance and rural development. The book discusses the integration of agriculture with the food sector and the emergence of bio-based industries, emphasizing sustainability and climate change concerns. It serves as a comprehensive resource on the institutional framework, agricultural policies, and future developments within the EU bioeconomy context.

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6 views163 pages

EU Bioeconomy Economics and Policies: Volume I Liesbeth Dries Sample

EU Bioeconomy Economics and Policies: Volume I, edited by Liesbeth Dries and others, explores the evolution of EU agricultural policies, highlighting the shift from production-related payments to those focused on environmental performance and rural development. The book discusses the integration of agriculture with the food sector and the emergence of bio-based industries, emphasizing sustainability and climate change concerns. It serves as a comprehensive resource on the institutional framework, agricultural policies, and future developments within the EU bioeconomy context.

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EU Bioeconomy
Economics and
Policies: Volume I
Edited by
Liesbeth Dries
Wim Heijman
Roel Jongeneel
Kai Purnhagen
Justus Wesseler
Palgrave Advances in Bioeconomy: Economics and
Policies

Series Editor
Justus Wesseler
Agricultural Economics and Rural Policy Group
Wageningen University
Wageningen, Gelderland, The Netherlands
More information about this series at
http://www.palgrave.com/gp/series/16141
Liesbeth Dries • Wim Heijman
Roel Jongeneel • Kai Purnhagen
Justus Wesseler
Editors

EU Bioeconomy
Economics and
Policies: Volume I
Editors
Liesbeth Dries Wim Heijman
Agricultural Economics and Rural Agricultural Economics and Rural
Policy Group Policy Group
Wageningen University Wageningen University
Wageningen, Gelderland Wageningen, Gelderland
The Netherlands The Netherlands

Roel Jongeneel Kai Purnhagen


Agricultural Economics and Rural Law and Governance Group
Policy Group Wageningen University
Wageningen University Wageningen, Gelderland
Wageningen, Gelderland The Netherlands
The Netherlands

Justus Wesseler
Agricultural Economics and Rural
Policy Group
Wageningen University
Wageningen, Gelderland
The Netherlands

ISSN 2524-5848     ISSN 2524-5856 (electronic)


Palgrave Advances in Bioeconomy: Economics and Policies
ISBN 978-3-030-28633-0    ISBN 978-3-030-28634-7 (eBook)
https://doi.org/10.1007/978-3-030-28634-7

© The Editor(s) (if applicable) and the Author(s), under exclusive licence to Springer
Nature Switzerland AG 2019
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights of
translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and retrieval,
electronic adaptation, computer software, or by similar or dissimilar methodology now
known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information
in this book are believed to be true and accurate at the date of publication. Neither the pub-
lisher nor the authors or the editors give a warranty, express or implied, with respect to the
material contained herein or for any errors or omissions that may have been made. The
publisher remains neutral with regard to jurisdictional claims in published maps and institu-
tional affiliations.

This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Contents

Part I Introduction   1

1 Introduction  3
Justus Wesseler, Liesbeth Dries, Wim Heijman, Roel
Jongeneel, and Kai Purnhagen

2 Bioeconomy Economics and Policies  7


Justus Wesseler, Roel Jongeneel, and Kai Purnhagen

Part II Institutional Framework  17

3 European Integration: A Historical Overview 19


Kai Purnhagen

4 European Agriculture and the Bioeconomy: A Historical


Overview 27
Kai Purnhagen and Alan Matthews

5 EU Institutions and Decision-Making Processes 37


Kai Purnhagen

v
vi CONTENTS

6 EU Budgetary Politics and Its Implications for the


Bioeconomy 51
Jeroen Candel

7 WTO Rules on Domestic Support for Agriculture and


Food Safety: Institutional Adaptation and Institutional
Transformation in the Governance of the Bioeconomy 69
Alexia Herwig and Yuliang Pang

8 Future Developments of the Institutional Framework 89


Kai Purnhagen

Part III Agriculture  97

9 Common Market Organisation 99


Huib Silvis and Roel Jongeneel

10 Direct Income Support and Cross-compliance125


Roel Jongeneel

11 Animal Health Policy151


Coen van Wagenberg, Willy Baltussen, and Roel Jongeneel

12 Plant Health and Plant Protection Policies173


Huib Silvis, Johan Bremmer, and Roel Jongeneel

13 Environment and Agriculture187


Huib Silvis, Roel Jongeneel, and Vincent Linderhof
CONTENTS vii

14 Assessment of the Common Agricultural Policy After


2020207
Roel Jongeneel, Emil Erjavec, Tomás García Azcárate, and
Huib Silvis

Index229
Contributors

Willy Baltussen Consumer and Chain Unit, Wageningen Economic


Research, The Hague, The Netherlands
Johan Bremmer Innovation- and Risk Management and Information
Governance Unit, Wageningen Economic Research, The Hague, The
Netherlands
Jeroen Candel Public Administration and Policy Group, Wageningen
University, Wageningen, Gelderland, The Netherlands
Liesbeth Dries Agricultural Economics and Rural Policy Group,
Wageningen University, Wageningen, Gelderland, The Netherlands
Emil Erjavec Agricultural Policy and Economics Department, University
of Ljubljana, Ljubljana, Slovenia
Tomás García Azcárate Institute of Economics, Geography and
Demography, Spanish National Research Council, Madrid, Spain
Wim Heijman Agricultural Economics and Rural Policy Group,
Wageningen University, Wageningen, Gelderland, The Netherlands
Alexia Herwig Law and Governance Group, Wageningen University,
Wageningen, Gelderland, The Netherlands
Roel Jongeneel Agricultural Economics and Rural Policy Group,
Wageningen University, Wageningen, Gelderland, The Netherlands

ix
x CONTRIBUTORS

Vincent Linderhof Green Economy and Landuse Unit, Wageningen


Economic Research, The Hague, The Netherlands
Alan Matthews Department of Economics, Trinity College Dublin,
Dublin, Ireland
Yuliang Pang University of Antwerp, Antwerp, Belgium
Kai Purnhagen Law and Governance Group, Wageningen University,
Wageningen, Gelderland, The Netherlands
Huib Silvis Performance and Impact Agrosectors, Wageningen
Economic Research, The Hague, The Netherlands
Coen van Wagenberg Consumer and Chain Unit, Wageningen
Economic Research, The Hague, The Netherlands
Justus Wesseler Agricultural Economics and Rural Policy Group,
Wageningen University, Wageningen, Gelderland, The Netherlands
List of Figures

Fig. 2.1 Combination of on- and off-farm income. (Source: Authors


based on Schmitt 1989b) 13
Fig. 5.1 Decision-making procedure in the EU. (Source: Gebert Kunst
and Thomas van Rijn. 2011. EU Institutions and decision-
making process, In: EU Policy for agriculture, food and rural
areas, ed. A. Oskam, G. Meester and H. Silvis, 68 Wageningen
Academic Publishers, 2nd ed.) 47
Fig. 5.2 Comitology procedure in the EU. (Source: Gebert Kunst and
Thomas van Rijn. 2011. EU Institutions and decision-making
process, In: EU Policy for agriculture, food and rural areas, ed. A.
Oskam, G. Meester and H. Silvis, 72 Wageningen Academic
Publishers, 2nd ed.) 49
Fig. 6.1 Net gainers and losers from CAP expenditure, 2014 (% GNI).
(Source: Matthews 2015) 60
Fig. 9.1 Original price support system for cereals. (Source: Harris et al.
1983)106
Fig. 9.2 Trade-disruptive effects of different forms of price and income
support in comparison to market price support. (Source: OECD
2002)110
Fig. 10.1 The evolution of the direct payment scheme. (Source: Based on
European Commission 2018) 133
Fig. 10.2 Internal convergence arrangements of EU member states.
(Source: European Commission 2018) 134
Fig. 10.3 Direct payments per potentially eligible hectare (PEA) by EU
member states in 2016. (Source: European Commission 2018) 143

xi
xii List of Figures

Fig. 10.4 Direct payments and their share in farm income (€/agricultural
work unit) by farm size (area-based). (Source: European
Commission 2018) 145
Fig. 11.1 Steps in a CE analysis. (Source: Adapted from Martins and
Rushton 2014) 167
Fig. 13.1 Provision of environmental benefits versus avoiding harmful
effects. (Source: Authors) 192
Fig. 14.1 The nine CAP-specific objectives proposed for the new CAP.
(Source: European Commission 2018a, b) 212
List of Tables

Table 2.1 Policy analysis framework 12


Table 3.1 Historical overview 21
Table 6.1 Expense categories under the 2014–2020 and 2021–2027
Multiannual Financial Frameworks 54
Table 7.1 Categories of domestic support policies 74
Table 7.2 Total domestic support of the EU in 2001–2012 (Unit:
Million Euro) 80
Table 9.1 Development of the EU agricultural market and price policies 109
Table 9.2 Ratio of producer to border price in EU, USA and OECD,
1986–2017122
Table 10.1 Direct payments and their targeting 129
Table 10.2 SMRs and GAEC standards as applicable after the 2013 CAP
reform137
Table 11.1 Original OIE List A diseases 154
Table 11.2 Forecast of annual budgets of CFF for the period 2014–2020 158
Table 11.3 Comparative table of CFF by disease (in 1000 euro) 159
Table 13.1 Some major EU directives for water and air 194
Table 14.1 Comparison of Pillar I eco-schemes and Pillar II payments for
environment, climate and other management commitments 213

xiii
PART I

Introduction
CHAPTER 1

Introduction

Justus Wesseler, Liesbeth Dries, Wim Heijman,


Roel Jongeneel, and Kai Purnhagen

Over the past two decades, the European Union (EU) internal market
policies in general, and the ones related to agriculture and the common
agricultural policies in particular, have observed substantial changes. These
include a move from direct production-related payments towards pay-
ments linked with environmental performance and rural development.
The EU Common Agricultural Policy (CAP) is organized under two pil-
lars, including cross-cutting issues. The first pillar includes the direct pay-
ments and market measures, and the second pillar includes the rural
development policy. Rural development policy has become evermore
important.
The increase in horizontal and vertical integration in the agriculture
and food sector, the increase in intra-industry trade and the globalisation
of trade but also in norms and values have linked the agricultural sector

J. Wesseler (*) • L. Dries • W. Heijman • R. Jongeneel


Agricultural Economics and Rural Policy Group, Wageningen University,
Wageningen, Gelderland, The Netherlands
e-mail: [email protected]; [email protected]; [email protected]; roel.
[email protected]
K. Purnhagen
Law and Governance Group, Wageningen University,
Wageningen, Gelderland, The Netherlands
e-mail: [email protected]

© The Author(s) 2019 3


L. Dries et al. (eds.), EU Bioeconomy Economics and Policies: Volume I,
Palgrave Advances in Bioeconomy: Economics and Policies,
https://doi.org/10.1007/978-3-030-28634-7_1
4 J. WESSELER ET AL.

more strongly with the food sector. Further, technical change has increased
the portfolio for processing biomass not only into food and feed but also
into a number of alternative bio-based products including bioenergy, bio-
polymers and more (European Commission 2012). The development of
bio-based industries provides new opportunities for agriculture and rural
communities (Wesseler and von Braun 2017). Environmental concerns
and climate change in particular have increased the demand for sustainable
development-related policies as indicated in the circular economy
(European Commission 2015) and bioeconomy strategy (European
Commission 2018) documents.
As a result of these developments, assessing the agricultural sector and
related policies in isolation may result in substantial biases from a technical
change, a regional (Heijman et al. 2017), an organisational (Pascucci et al.
2015) as well as a legal perspective (Purnhagen 2013). One of the most
striking examples is perhaps the debate about new developments in plant
breeding. It has often been argued that the stringent regulatory policies on
the approval of genetically modified organisms (GMOs) can be justified by
concerns of EU consumers towards the technology, but that this will not
have further implications for other sectors such as medicine. This argument
falls short of the insight that such kind of policy is very likely to spill over to
other sectors of the economy as well. Take patent applications for the gene-
editing technology CRISPR-Cas that can be applied across several sectors as
an example: The EU has only a share of about 7% of all patents, while the
USA and China have a share of more than 40% according to a recent study
(Martin-Laffon et al. 2019).1 The shares for the medical sector are even
lower, only about 3.5%, while for the agricultural sector they are about 8%.
The results suggest that EU policies on GMOs can have substantial, in this
case negative, spill-over effects on other sectors. The example further illus-
trates the complexity of EU bioeconomy policies.
Within the two volumes, we attempt to make a contribution to better
understanding the complexity of EU bioeconomy policies. As mentioned
above agricultural policies in the EU should not be assessed in isolation.
We have given the book the name EU Bioeconomy Economics and Policies
to explicitly stipulate the importance of the interconnectedness of the agri-
cultural sector and related policies with up- and downstream sectors.
1
Gene editing is considered to be the leading technology in biology for developing new
solutions for a number of problems in agricultural production and human medicine as well
as new products for the bio-based industry. CRISPR (clustered regularly interspaced short
palindromic repeats) in combination with Cas proteins is a widely used technology for gene
editing. (Doudna and Sternberg 2017).
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